Guide to NJC Rates and Allowances

December 2007

THE NATIONAL JOINT COUNCIL

Through the National Joint Council, participating employers and bargaining agents take joint ownership of broad labour relations issues and develop collaborative solutions to workplace problems. Employers and bargaining agents have agreed that the National Joint Council is the "Forum of Choice":

to share information;

to consult on workplace policies;

to co-develop directives which provide public service-wide benefits.

Created in 1944, the National Joint Council today includes 18 public service bargaining agents, Treasury Board and a number of "separate employers" as official members.

Partnership and co-development are keys to the modernization of public service labour relations. At the National Joint Council, government and union representatives demonstrate that partnership and co-development improve the workplace and provide important benefits to public service employees.

NJC complements collective bargaining between individual unions and employers by offering an alternate and innovative way to address issues on a public service-wide basis.

Jointly developed NJC directives and plans are an important component of public service compensation and guide many aspects of work in the public service. NJC "products" include:

the Public Service Health Care Plan administered by a joint Trust, which provides almost $752.7 million in benefits annually to over one million Canadians

a dental insurance plan which reimburses over $724.96 in claims on average per employee each year

a disability insurance plan delivered $229 million in 2008 in support to affected employees

a Travel Directive which covers all aspects of employee business travel, including $1.25 billion in travel reimbursements

an Isolated Posts and Government Housing Directive which helps employees in isolated locations through travel support, rent assistance and $39.9 million in special allowances

Foreign Service Directives which target $73.2 million in allowances to address the special needs of employees who serve Canada abroad

bilingual bonuses, relocation payments, commuting allowances

The National Joint Council also models innovative approaches to dispute resolution, including a unique grievance procedure where employer and union representatives jointly decide whether employees have been fairly treated within the intent of NJC directives.

Employees may request a posting loan to facilitate a posting. In order to qualify for a posting loan the employee must have a posting confirmation form (or equivalent) from the employing department.

Methodology

The maximum amount of the loan is adjusted annually on April 1st, to reflect the average percentage increase in public service salaries for the preceding calendar year, in accordance with the methodology agreed to by the NJC.

The rate of interest is determined on the first day of each quarter by the Department of Finance to reflect the average interest rate on 90-day Treasury bills during the first month of the preceding quarter.

Review Process

The NJC Committee on Foreign Service Directives reviews the maximum amount of the loan annually on April 1st, before publication/implementation.

Approval Process

Foreign Service Directives Committee

Communication of Decision

After approval, the new rate is published on the National Joint Council and Treasury Board Web sites in the form of a communiqué.

The original allowance was established in 1982 through a survey of employee claims. The maximum amount is adjusted annually on April 1st, to reflect the average percentage increase in public service salaries for the preceding calendar year, in accordance with the methodology agreed to in the NJC.

On April 1, 2009 the allowance was increased by $100.00 for "cleaning of employee's residence".

Review Process

Reviewed by the NJC/FSD Committee before publication/implementation.

Approval Process

Foreign Service Directives Committee

Communication of Decision

After approval, the new rate is published on the National Joint Council and Treasury Board Web sites in the form of a communiqué.

Rate / Allowance: FSD 15 - Relocation - Car Rental Expenses

Employees may claim reimbursement of car rental expenses (or taxi) as specified in the directive, in Canada and/or at a post on relocation. The maximum amounts are adjusted annually on April 1st.

Methodology

The original amounts were established in consultation in the NJC/FSD Committee and are adjusted annually on April 1st to reflect the average percentage increase in public service salaries for the preceding calendar year, in accordance with the methodology agreed to at the NJC.

Review Process

Reviewed by the NJC/FSD Committee before implementation/publication.

Approval Process

Foreign Service Directives Committee

Communication of Decision

After approval, the new rate is published on the National Joint Council and Treasury Board Web sites in the form of a communiqué.

Rate / Allowance: FSD 25 – Shelter - Rent Ceilings

At posts where employees lease accommodation privately, a rent ceiling is normally established based on family configuration and salary to reflect the maximum amount the Crown may pay to rent private accommodation at that post.

Methodology

The Deputy Minister of Foreign Affairs, on the recommendation of the appropriate Foreign Service Interdepartmental Co-ordinating Committee, has been delegated authority to establish rent ceilings for locations where staff accommodation is privately leased.

An interdepartmental team periodically reviews local market conditions based on the availability of comparable accommodation occupied by a person of similar salary and family configuration in the Ottawa/Gatineau area.

Review Process

As requested by post management.

Approval Process

The Deputy Minister of Foreign Affairs, on the recommendation of Working Group "A", has been authorized to establish rent ceilings.

Communication of Decision

DFAIT informs post management and employees at post, as appropriate.

Rate / Allowance: FSD 25 – Shelter - Employee Shelter Costs

The shelter cost is the amount payable by the employee to the Crown for occupancy of Crown accommodation or privately rented accommodation where the employee receives shelter assistance, and in general corresponds to the cost of average fully-serviced unfurnished rental accommodation normally occupied by a person of similar salary and family configuration in the Ottawa/Gatineau area.

Methodology

Employee shelter costs were established on June 1st, 2001, in accordance with the methodology agreed to in the NJC Committee on Foreign Service Directives on the basis of Statistics Canada census information. These costs are adjusted on April 1st of each year by Treasury Board staff on the basis of movements in Consumer Price Index (CPI) for housing rental costs in the Ottawa area. Effective April 1st, 2004 the methodology was revised to remove the annual adjustments on the basis of movements in the CPI and to base annual adjustments on an employee's salary on April 1st of each year. (revised May 17, 2004)

Review Process

Revised employee shelter cost tables are submitted to the NJC/FSD Committee for approval prior to implementation.

Approval Process

The Foreign Service Directives Committee has been authorized to revise employee shelter costs.

Communication of Decision

After approval, the new rate is published on the National Joint Council and Treasury Board Web sites in the form of a communiqué.

The employee pays a fixed rate for the rental of a Crown owned or Crown provided vehicle when

Employer will not ship vehicle to post, or

Employee's Private Motor Vehicle (PMV) is not available at time of relocation.

Methodology

The rate paid by the employee is based on a Canadian average annual operating cost of vehicles, derived from a report provided to the NJC Travel Committee by an independent research consulting service which is used to establish kilometric rates for vehicle operation.

Review Process

The rates have not been adjusted since 2000 as the methodology is under review. The NJC FSDs Committee reviews the fixed rates before publication/implementation.

Approval Process

The Foreign Service Directives Committee has been authorized to revise the rate for the rental of a Crown vehicle.

Communication of Decision

After approval, the new rate is published on the National Joint Council and Treasury Board Web sites in the form of a communiqué.

Kilometric rate paid to employees for the use of their Private Motor Vehicle (PMV) when employees are eligible for commuting assistance.

Methodology

The rate for use of a PMV approved by the NJC Travel Committee is used to establish kilometric rates for vehicle operation where the fuel component of the calculation is adjusted by DM-DFAIT to reflect local costs.

Review Process

The post kilometric (mileage) rate for commuting assistance shall be revised annually on April 1st of each year and also on such other dates as the traveller-request rate for official travel at the post is adjusted by the Deputy Minister of Foreign Affairs.

Approval Process

Authority has been delegated to DM – DFAIT.

Communication of Decision

Published on the National Joint Council and Treasury Board Web sites in the form of a communiqué. DFAIT communicates to individual missions, as appropriate.

Rate / Allowance: FSD 32 – Day Care Assistance - Day Care Allowances

An allowance to assist single parents or working couples with the costs of enrolling children in accredited day-care or day-nursery institutions, where the cost at post is higher than that of similar facilities in Ottawa.

Background

FSD 32 was introduced in the 2000/2001 cyclical review and came into effect April 1, 2000. The methodology for the allowance was incorporated within the text of the directive for greater transparency.

The FSD Committee struck a sub-committee in 2007 to review the directive and its methodology. The revised directive, including the methodology, became effective April 1, 2009. The complete methodology appears in this document.

Methodology

The revised methodology, from the 2008/2009 cyclical review of the FSDs, includes increased flexibilities and reflects a more contemporary approach to daycare, effective April 1, 2009.

Mission ceilings

DFAIT determines the representative costs of day-care, for each mission, based on information provided by that mission.

Employee Share / Deductibles

The deductibles represent the average cost of daycare in Ottawa. These amounts are obtained through a survey of 8 representative daycares in the Ottawa region. The daycares reflect non-profit, charitable and private daycare institutions available in Ottawa.

Age Categories

The representative daycares offer services to Infants (less than 18 months), Toddlers (18 months to less than 2 ½ years), and Preschool-aged children (2 ½ years and over). Therefore, the deductible has been broken down into three categories to reflect these age categories.

Maximum Amount

The maximum dollar amount of the allowance is three times the average cost in Ottawa.

Registration fees

The amount for registration fees represents the estimated average reasonable cost of such fees abroad, as determined by the FSD Committee during the 2008/2009 cyclical review

Half-day periods

Half-day periods are morning or afternoon periods on workdays. The full monthly deductible is represented by the total number of half-day periods within that given month. Where employees use less than the total number of half-day periods within the given month, both the deductible and mission ceiling will be prorated based on the number of periods per month the child attends.

Rate / Allowance: FSD 35 – Education Travel - Travel Allowance

A Travel Allowance may be authorized where education allowances or shelter assistance are being paid under FSD 34, to send a dependent child/student to/from an elementary or secondary school approved by the deputy head, OR for a parent to accompany a student/child from the post to the student's school at the commencement of the first school year.

An allowance may be authorized where shelter assistance is or will be paid pursuant to FSD 34.06, to assist in sending a dependent student to a post-secondary educational institution in Canada, OR from a secondary school in Canada to a post-secondary school in Canada.

Methodology

Employee submits an estimate of fare quotes and ground transportation to/from educational facility or employee's residence at mission. Standard for air travel is economy class which includes APEX, charters and other reduced fares.

An allowance where a travel allowance has been authorized under this Directive may also be authorized to cover actual and reasonable costs of shipping personal effects not to exceed the appropriate weight limitation for an accompanying dependent in accordance with FSD 15.14.

Methodology

The allowance is based on the actual weight shipped and estimate of cost provided by the moving company.

Review Process: N/A

Approval Process

The DM-DFAIT has been authorized to approve an allowance for shipment of a student's personal effects.

Employees on health care travel that are single parents or whose spouse/common law-partner accompany them may claim dependent care expenses. Expenses are for dependant children who reside permanently with the employee at the post where these are in excess of any existing dependant care arrangements.

Methodology

Dollar amounts specified are adjusted from time to time to reflect the dollar amounts specified in the NJC Travel Directive.

Review Process: N/A

Approval Process: N/A

Communication of Decision

Published on the NJC Website, Treasury Board and DFAIT communiqués, if rate is revised.

Reimbursement of the cost of board, lodging and laundry for the patient and any other authorized travellers while occupying private accommodation at the approved health care location.

Methodology

Maximum amount is adjusted in accordance with the relevant provisions of the 1993 Relocation Directive for family separation expenses while in private accommodation, and, where the location approved by the deputy head is outside Canada, such amount is further adjusted by the post index for that location where the post index is above 100.

Review Process: N/A

Approval Process: N/A

Communication of Decision

Published on the NJC Website, Treasury Board and DFAIT communiqués if rate is revised.

Where travel has been authorized for an employee/spouse/common-law partner for the birth of a child, an allowance may be authorized for travelling expenses, and living expenses not to exceed five days, for the employee/spouse/common-law partner to be present at the birth of his child.

Methodology

The allowance is based on the lowest available airfare appropriate to a particular itinerary, including APEX, charters and other reduced or discounted fares as well as living expenses as specified in this directive.

Mission administration approves travel upon submission of a request and supporting documentation from the employee.

Review Process: N/A

Approval Process

Mission administration (DFAIT) has been authorized to approve allowances for travel.

Communication of Decision: N/A

Rate / Allowance: FSD 50 - Vacation Travel Allowance

An employee and any dependant normally residing with the employee at post is entitled to a vacation travel allowance in order to assist them in taking a vacation in Canada or some other location, with more frequent travel provisions for employees at more difficult posts.

Methodology

The Vacation Travel Allowance reflects 80% of the return full (Y) economy airfare from the post to the headquarters city. Where an economy (Y) fare is not available for a specific post, 100% of the Y2 fare is used for that post. DFAIT determines the amounts payable effective June 1st, of each year, in accordance with the methodology and guidelines agreed to in the NJC Committee on Foreign Service Directives.

Subsequent to June 1st, an allowance may be revised where unusual circumstances or conditions, outside the control of the employee (e.g. reductions in international flights due to civil unrest or natural disasters; revaluation / devaluation of local currency), demonstrate that the allowance is clearly inadequate for return travel from the employee's post to the headquarters city.

The Government's authorized travel provider, as selected by PWGSC, shall be contracted by DFAIT to carry out the survey of fares and submit these to AEF/DFAIT, in accordance with the following guidelines for establishing the return full (Y) economy air fare from post to the employee's headquarters city:

Posts will be requested to confirm in January that the routing and carriers (where Air Canada or its partners in the Star Alliance cannot provide a rate) established for the previous year's review are still the most appropriate, and to update, if necessary. This will form the basis for the contractor's survey.

June 1st shall be the effective date for establishing the fare, with information to be provided by the contractor for rates effective May 1st.

Full Y economy fare with no restrictions or conditions shall be the basis for determining the appropriate fare. Where a Y fare is not available for a specific post, a Y2 fare shall be requested.

Rates for Air Canada or its partners in the Star Alliance shall be used if available. Where not available, fares on three airlines acceptable to the Post shall be quoted. AEF shall provide the contractor with the names of the three carriers to be surveyed. The contractor will be asked to provide a rate to reflect the average of the fares quoted from these carriers.

The fare shall be quoted from post to headquarters city and return, in the currency of the country in which the post is located.

Fares shall include all taxes and charges which are paid as part of the ticket price, except those taxes which are remitted to the employee by the host government.

Where fares provided by the Government service provider are not consistent or do not appear representative of actual fares quoted locally for other travel under the Foreign Service Directives, the Heads of Mission or other sources shall be consulted in order to establish fair and defensible allowances.

For a few posts, the methodology shall be adjusted to recognize that there is no commercial air fare for the complete journey from the post to the headquarters city.

The contractor shall be requested to advise AEF/DFAIT should there be any extraordinary changes in fares for one or more posts between the date of survey and the 1st of June.

Fares shall be converted by DFAIT using the May 1st Bank of Canada exchange rates. Where unavailable, another recognized source will be used.

Review Process

Annual

Approval Process

The specific amount of the allowance is approved by DFAIT at the time of application.

The Deputy Minister of Foreign Affairs has been authorized to revise Appendix B to FSD 56 annually on June 1st, on the recommendation of the appropriate foreign service interdepartmental co-ordinating committee.

Missions will be responsible for administering VTA, including issuing the allowance in local currency, when requested. In such instances, VTA will be based on the CND amount published June 1, but at the exchange rate in effect on the date the payment is issued.

Communication of Decision

On application, the employee is informed of the amount of the allowance.

(b) critical illness (including critical injury) or death of a member of the family unit at post or in Canada;

(c) critical injury/illness or death of a parent of the employee, spouse/common-law partner, a non‑dependant child, a brother or sister of the employee, spouse/common-law partner (including half-brothers and half-sisters); OR

(d) travelling expenses for members of the family unit in case of critical illness/injury of an employee while on temporary duty;

(e) a major life event of a parent of the employee, spouse or common-law partner, such as on giving up the family residence and moving into an elder care facility.

Methodology

The allowance is based on the most direct routing to reflect the lowest available airfare at the time travel arrangements are made, including reduced or discounted fares as well as an allowance for accommodation where applicable. The allowance will be reduced by any employee share which may be required by the directive, as well as any rebate granted by the carrier on compassionate grounds.

The employee submits a request to the HOM for compassionate travel assistance within the limitations prescribed in the Directive.

Review Process: N/A

Approval Process

Mission administration (DFAIT) has been authorized to approve allowances for compassionate travel.

Communication of Decision

DFAIT in the case of the Head Of Mission (HOM), and the HOM for the Canadian Base Staff (CBS) at the Mission.

Rate / Allowance: FSD 55 – Post Living Allowance - Post Index

Post Indices reflect the price differential between each post and Ottawa for a prescribed basket of goods and services. The Post Index, together with the percentage of an employee's salary which is spent at post for specified expenditures, is used to produce the individual Post Living Allowance.

Methodology

Post Indexes are determined by Statistics Canada in accordance with the methodology developed and agreed to by the NJC/FSD Committee.

Review Process

Post Indexes are reviewed monthly by Statistics Canada to reflect inflation and currency adjustments. Prices are reviewed on the basis of full-scale surveys conducted at posts and analyzed by Statistics Canada, on a regular and as required basis.

Approval Process

Statistics Canada determines Post Indices.

Communication of Decision

Changes in Post Indexes are reported monthly by Statistics Canada and communicated to posts by DFAIT. Any change in Post Living Allowances resulting from a revised Post Index will appear on the employee's monthly foreign service allowance statement.

Rate / Allowance: FSD 55 - Post Living Allowance

The Post Index, together with the percentage of an employee's nominal salary that is spent at post for specified expenditures (spendable income), is used to produce the individual Post Living Allowance to compensate for the higher costs of purchasing goods and services at post.

Background

Basket of goods

Effective June 1, 2001, the methodology for the determination of the Post Index was revised to reflect only those expenditures actually incurred at post for the purchase of goods and services. Expenditures for which provision is made elsewhere in the Foreign Service Directives are specifically excluded, as are those expenses which are incurred in Canada.

Spendable income curve

Effective June 1, 2001, the revised methodology recognizes that employees at different salary levels spend differing percentages of salary for post-related expenses (see "NJC FSD Committee, FSD 55 Study Group, Final Report on the Review of Post Index Methodology"). The spendable income curve represents the amount of salary subject to adjustment, by salary level)

Statistics Canada produces the Survey of Household Spending (SHS) every 4 years. The Survey results affect the Consumer Price Index (CPI) weightings, which in turn trigger the update of the Spendable Income Curve / Appendix to FSD 55. The Appendix has been updated on 3 separate occasions with the release of the SHS results by Statistics Canada: June 1 of 2001, 2003 and 2008.

With every new table introduced, a disparity occurred in the allowances employees received, due to differences in start dates of assignments, the duration of postings, etc.

During the 2007/2008 cyclical review of the FSD, the FSD Committee reviewed the application of the implementation of the spendable income curve to address the above issue.

Methodology

The new methodology involves adjusting the spendable income curve annually to reflect the average CPI increase and continuing to update the curve every four years once the SHS results are available.

The annual adjustment is based on the calculated CPI movement for the basket of goods and services included in Post Index measurements. The annual CPI increase will be implemented on June 1 to reflect the average CPI will be based on the 12 month period ending the previous December 31.

Annual updates to the Appendix reflect inflation and, at the same time, remove the fixed percentage of salary subject to adjustment for the duration of a posting. Each individual at the same salary level would be on the curve and receive the same level of inflation protection. The salary range applicable to Post Living Allowance is capped at $100,000. The highest mid-point salary is $100,000. The portion of an employee's salary in excess of $100,000 is not included in the calculation of Post Living Allowance.

The new curve is introduced to coincide with the introduction of the detailed SHS survey used to update CPI weighting patterns every four years. The relevant CPI movement will be used to project the curve for whatever time lag exists between the SHS year and the implementation date.

Commencing June 1, 2009 the methodology shall be implemented and updated on this date every year thereafter.

Review Process

The NJC/FSD Committee reviews SHS surveys, identifies significant changes which impact on the methodology, and adjusts the formulae accordingly.

Approval Process

The Foreign Service Directives Committee has been authorized to update the allowance, as necessary.

Any revisions to the methodology are approved by Executive Committee.

Communication of Decision

Published on the NJC and TBS Web sites in the form of a Communiqué. Any change in Post Living Allowance will appear on the employee's monthly foreign service allowance statement.

The Foreign Service Premium (FSP) is payable to employees on posting as an incentive to foreign service and recognition of disruption, disutilities and disincentives resulting from service outside Canada.

Methodology

The FSP tables were developed through consultation in the NJC and were revised
April 1, 2009. The premium varies according to the employee's family size and cumulative service outside Canada.

The premium is adjusted annually on April 1st to reflect the average percentage increase in public service salaries for the preceding calendar year, in accordance with the methodology agreed to in the NJC Committee on Foreign Service Directives. The annual review includes updates to Appendix A and C (the transitional table)

An allowance is paid on a monthly basis to assist employees with miscellaneous travel requirements as a result of foreign service.

Methodology

The annual allowance reflects 80% of the return full (Y) economy airfare from the post to the headquarters city. Where an economy (Y) fare is not available for a specific post, 100% of the Y2 fare is used for that post. DFAIT determines the amounts (allowances) payable effective June 1st, of each year, in accordance with the methodology and guidelines agreed to in the NJC Committee on Foreign Service Directives.

Subsequent to June 1st, an allowance may be revised where unusual circumstances or conditions, outside the control of the employee (e.g. reductions in international flights due to civil unrest or natural disasters; revaluation / devaluation of local currency), demonstrate that the allowance is clearly inadequate for return travel from the employee's post to the headquarters city.

The Government's authorized travel provider, as selected by PWGSC, shall be contracted by DFAIT to carry out the survey of fares and submit these to DFAIT, in accordance with the following guidelines for establishing the return full (Y) economy air fare from post to the employee's headquarters city:

Posts will be requested to confirm in January that the routing and carriers (where Air Canada or its partners in the Star Alliance cannot provide a rate) established for the previous year's review are still the most appropriate, and to update, if necessary. This will form the basis for the contractor's survey.

June 1st shall be the effective date for establishing the fare, with information to be provided by the contractor for rates effective May 1st.

Full Y economy fare with no restrictions or conditions shall be the basis for determining the appropriate fare. Where a Y fare is not available for a specific post, a Y2 fare shall be requested.

Rates for Air Canada or its partners in the Star Alliance shall be used if available. Where not available, fares on three airlines acceptable to the Post shall be quoted. DFAIT shall provide the contractor with the names of the three carriers to be surveyed. The contractor will be asked to provide a rate to reflect the average of the fares quoted from these carriers.

The fare shall be quoted from post to headquarters city and return, in the currency of the country in which the post is located.

Fares shall include all taxes and charges which are paid as part of the ticket price, except those taxes which are remitted to the employee by the host government.

Where fares provided by the Government service provider are not consistent or do not appear representative of actual fares quoted locally for other travel under the Foreign Service Directives, the Heads of Mission or other sources shall be consulted in order to establish fair and defensible allowances.

For a few posts, the methodology shall be adjusted to recognize that there is no commercial air fare for the complete journey from the post to the headquarters city (e.g. ground transportation from Amsterdam to The Hague).

The contractor shall be requested to advise DFAIT of any extraordinary changes in fares for one or more posts between the date of survey and the 1st of June.

Fares shall be converted by DFAIT using the May 1st Bank of Canada exchange rates. Where unavailable, another recognized source will be used.

Review Process

Annual.

Approval Process

The Deputy Minister of Foreign Affairs has been authorized to revise Appendix B to FSD 56 annually on June 1st, on the recommendation of the appropriate foreign service interdepartmental co-ordinating committee (working group A) and reported to the NJC Committee on Foreign Service Directives.

Communication of Decision

Published on the National Joint Council and Treasury Board Web sites in the form of a Communiqué. Any change will appear on the employee's monthly foreign service allowance statement.

Employees on posting abroad are paid an allowance in recognition of undesirable conditions existing at certain posts. The allowance varies according to the post rating level and family size.

Methodology

PDA Amount

The PDA tables were developed through consultation in the NJC and were revised effective April 1, 2009. The allowance varies according to the employee's family size and post rating level.

Development of PDA levels

Post rating levels are determined by the DM-DFAIT, on the recommendation of the Inter-departmental Hardship Posts Committee, in accordance with the Hardship Posts Rating Form, which measures the level of hardship according to various factors such as isolation, recreation, health, personal security, cultural differences, environment, local transportation and availability of food and clothing. The Hardship Posts Rating Form is agreed upon in the NJC.

Review Process

The PDA is reviewed annually by the NJC/FSD Committee prior to publication / implementation.

Post rating levels are reviewed by the Inter-departmental Hardship Posts Committee every three or four years or as requested by the Mission due to significant changes in post conditions.

Approval Process

The Foreign Service Directives Committee has been authorized to revise the Post Differential Allowance.

A special payment may be established in recognition of extraordinary conditions arising out of active hostilities and/or natural disasters at a post where the existing post rating is at level V. The extraordinary conditions are triggered by an ‘event'. The special payment is applicable for the period during which the employee is exposed to the extraordinary conditions caused by the ‘event'.

The amount of the special payment is a percentage of up to 100% of the basic level V post differential allowance and based on the employee's family size at the post.

Methodology

The Special Payment for Extraordinary Conditions (SPEC) Mission Report and Rating Form were developed by a NJC FSD sub-committee as a result of changes to this directive in the 2009 cyclical review which increased the percentage of special payments from a maximum of 50% to 100% of the basic level V post differential allowance. The SPEC Mission Report and Rating Form were approved by the NJC FSD Committee.

In accordance with FSD 58.07(a) and (b) a post rating level may be established or revised for a post where there was no post differential allowance at the time or where the post hardship level was rated at I to IV at the onset of the extraordinary conditions triggered by an ‘event'. For these situations, the Post Hardship Report and Rating Form for rating a mission under FSD 58.01 shall be used to establish the revised post rating level up to level V. Once at level V, if the extraordinary conditions triggered by an event at the post are such that the Post Hardship Report and Rating Form does not adequately address the entire spectrum of the new extraordinary conditions, the post may then be further assessed using the SPEC Mission Report and Rating Form.

In accordance with FSD 58.07(c), where a post rating level V is already in effect at the time of the extraordinary conditions triggered by an ‘event', the SPEC Mission Report and Rating Form shall be used to establish the special payment which is in addition to the basic level V post differential allowance.

Recommendations for changes to the SPEC Mission Report and Rating Form from the Interdepartmental Hardship Post Committee may be referred to the Interdepartmental Working Group A for consideration and for final approval to the NJC FSD Committee.

Development of Special Payments Percentages

The percentages for special payments are determined by the Deputy Minister of Foreign Affairs, on the recommendation of the Interdepartmental Hardship Post Committee, in accordance with the SPEC Mission Report and Rating Form, which measure the impact of the ‘event' according to various factors such as Mission program delivery, casualties, food, water and shelter, local governance, services, infrastructure and protection measures.

Review Process

Post evaluations are reviewed by the Interdepartmental Hardship Post Committee at any time there are extraordinary conditions triggered by an ‘event' (active hostilities and/or natural disaster) at a post.

An on-going review should be conducted on a regular basis, normally every two months, until such time as these extraordinary conditions can be accommodated within the normal PDA rating scale.

Approval Process

The Special Payment percentages are approved by the Deputy Minister of Foreign Affairs, on the recommendation of the Interdepartmental Hardship Post Committee.

Special Payments in excess of 50% of the basic level V PDA shall be reported to the NJC FSD Committee.

Communication of Decision

Any change will appear on the employee's monthly foreign service allowance statement.

Published on the National Joint Council Web site and in the monthly DFAIT Schedules to the FSDs. Posts affected by changes are notified directly by DFAIT.

In order to qualify as an isolated post, a location must meet the criteria outlined in Part II of the Directive qualifying it for an environment allowance. Qualification for an environment allowance is a prerequisite for all other allowances and, subject to 1.14.2, benefits under this Directive, except for the special location allowance.

Methodology

The environmental allowance becomes payable when a post has satisfied those criteria governing its eligibility to be considered isolated under sections 2.1 to 2.4 inclusive of the Directive. The environment allowance is assessed on the basis of population, climate and access. Points are allocated for various degrees of these factors as outlined in Appendix H. Total point values shall determine post classification at one of 5 levels. A minimum of 45 points is required to qualify.

Population

An 8-level population scale

Climate

The features of this factor are the degree of wind-chill, the length of the period of darkness, annual precipitation and temperature variations. This factor is assessed on a 25-year average from a map prepared by the Department of the Environment for this purpose.

The new designation criteria redistribute the points formerly allocated to the Lands factor to the Climate factor. The redistribution is based on a regression analysis that found that a relationship exists between the climate factor and the lands factor in that the lands features become more apparent and has a greater impact on posts further north. The redistribution of those points is now reflected in Appendix H of the new directive.

Access

Points awarded depending on access or to an all-weather road or no all-weather road, availability of scheduled air or rail passenger service and road distance from population centers.

Review Process

Review of classifications is ongoing, with a formal reappraisal every 5 years after the Canadian Census is published. The value of environmental allowances is updated annually effective August 1st.

Approval Process

Authority to approve delegated to the Isolated Posts and Government Housing Committee with disputes referred to the Executive Committee.

Communication of Decision

After approval, Appendix A for classification level and Appendix B for allowances are amended accordingly and published by the NJC.

A living cost differential is payable at certain isolated posts where prices for food and other goods and services are abnormally high in relation to the location identified as point of comparison.

Methodology

A living cost differential may be authorized at certain isolated posts where abnormally high prices prevail for food (purchased from stores and restaurants), household supplies and operations, household/tenant insurance premiums, transportation, personal care supplies and services, pharmaceutical products, entertainment supplies, rental of cablevision/satellite services, reading materials, tobacco and alcoholic beverages. This allowance for the isolated post becomes effective when the prices of these goods and services, as measured by Statistics Canada, reaches an index level of 115 or higher in relation to an index of 100 at the point of comparison..

When Statistics Canada is unable to measure the index by reason of the lack of response by employees to mail survey questionnaires, the NJC, on the recommendation of the Isolated Posts & Government Housing Committee, may recommend the reduction or deletion of the living cost differential level.

The amount of the allowance is related to the Canada average based on the expenditures of a family of 2 or more for the range of goods and services covered.

There are 16 LCD levels, which reflect 5-point ranges.

Review Process

Review is done on a three and one-half-year cycle, with two regions being surveyed each year and Statistics Canada recommends adjustments to classifications of posts, where necessary, following surveys. The value of the living cost differential allowance is updated annually accordingly effective August 1st.

Approval Process

Authority to approve is delegated to the Isolated Posts and Government Housing Committee with disputes referred to the Executive Committee.

Communication of Decision

After approval, Appendix A for classification levels and Appendix C for allowances are amended accordingly and published by the NJC.

A fuel and utilities differential is payable at designated posts to assist employees to meet abnormally high prices for fuel and utilities, provided employees are paying fuel and utility charges directly to the supplier. These prices are caused by higher transportation costs and consumption rates imposed by the geographical location of the isolated post.

Methodology

A fuel and utilities differential shall only be paid at designated isolated posts where the following conditions are met:

(a) (i) employees are required to pay for one or both of the actual fuel or utilities consumption directly to the supplier(s); or

(ii) employees are renting private accommodations and are paying indirectly through an identifiable portion of their rent; and

(b) (i) the isolated post experiences 6,000 Celsius degree-days or more annually; or

(ii) the cost of fuel and utilities is at least 15 per cent greater than the point of comparison's average cost.

The differential paid, determined by referring the appropriate classification level of the post to Appendix D of this Directive, is based on the differential between the National Average Expenditure for fuel and utilities plus 15 per cent, and the calculated fuel and utilities expenditure at the isolated post.

Review Process

Statistics Canada conducts an annual review of post classifications and recommends adjustments where necessary. Since the results are not released until the following year, any increases to the allowances are effective October 1 of the previous year.

Approval Process

Authority to approve is delegated to the Isolated Posts and Government Housing Committee with disputes referred to the Executive Committee.

Communication of Decision

After approval, Appendix A is amended accordingly to reflect new fuel and utilities levels and published by the NJC.

A shelter cost differential is payable at designated isolated posts where shelter costs are abnormally high in comparison to the national average rent for a similar unit at the 12 points of departure cities designated in the Directive.

Methodology

"Private Accommodation"

The SCD represents the difference between the average rent for a three-bedroom detached bungalow at the isolated post and the national average rent for a similar unit at the 12 locations identified as points of departure in the Directive.

"Government Housing"

The SCD represents the difference between the current average base shelter value for all three‑bedroom single-detached government housing units at the post and the national average rent for a similar unit at the 12 locations identified as points of departure.

The national model used by the Canada Mortgage and Housing Corporation is a 1200 sq. foot single detached bungalow with overall average conditions and undeveloped basement.

Review Process

The Canada Housing and Mortgage Corporation will review the base shelter values and the national average rent annually, normally in January. The timing coincides with the review of the base shelter values, to maintain the relativities with the average rent. Adjustments to the SCD, as a result of this review, shall be effective August 1.

Approval Process

Authority to approve is delegated to the Isolated Posts and Government Housing Committee with disputes referred to the Executive Committee.

Communication of Decision

After approval, Appendix K-1 and K-2 is amended accordingly and published by the NJC.

Rate / Allowance: Meals or Rations

When employees and their dependants, if any, are provided with meals or rations by or on behalf of the employer, they shall be charged for meals or rations at the rates specified in Appendix I (of the IPGHD).

Methodology

The meals or rations rates are calculated by the Department of National Defence (DND) taking into account the basic food cost (BFC) and the weighted average labour cost per meal day (i.e. 3 meals per day) calculated from the previous fiscal year for each military base. The average basic food cost, plus the average labour cost per meal-day are then multiplied by 296 days. This annual total is divided by 12 to obtain the monthly charge.

Review Process

The rates are updated annually effective August 1.

Approval Process

In accordance with the methodology and paragraph 1.17.6 of the IPGHD, the Treasury Board Secretariat may vary the rates annually.

Communication of Decision

After approval, Appendix I is amended accordingly to reflect the new rates and published by the NJC. A notice is also published on the TBS Web site.

PERSONAL PROTECTIVE EQUIPMENT AND CLOTHING DIRECTIVE

Rate / Allowance: Protective Footwear Allowance

Should the Department decide not to issue protective footwear directly, it may provide protective footwear that meets the appropriate standard by having employees purchase the protective footwear and receive reimbursement for the full costs of the purchase, upon presentation of proof of purchase.

If the Department wishes to have employees purchase protective footwear and be reimbursed, the Department shall establish, in consultation with either the Workplace Committee, Safety and Health Representative or the Policy Committee (As defined in Canada Labour Code), a price range appropriate to the type of protective footwear required.

Methodology: N/A

Review Process: N/A

Approval Process: N/A

Communication of Decision: N/A

TRAVEL DIRECTIVE

Rate / Allowance: Kilometric Rates

The Appendix B of the Travel Directive establishes the kilometric rates for each Canadian province, Northwest Territories, Yukon and Nunavut, which are payable in cents per kilometre, when a government employee uses a privately owned vehicle driven on authorized government business travel.

Methodology

The provincial rates are calculated by an independent consultant and reviewed by the Government Travel Committee on an annual basis, other than where exceptional circumstances exist. The rates are determined by the analysis of the following factors by location/province: new vehicle prices, depreciation and financing rates, current fuel prices, insurance premium rates and operating costs. As the above costs increase and/or decrease, the overall kilometric rates change accordingly.

Review Process

The rates are reviewed annually, effective January 1 each year, and 3 additional fuel update reviews are conducted with amendments to the rates effective April 1, July 1, and October 1 as required.

Approval Process

The Government Travel Committee analyzes the rates. The Executive Committee then reviews the recommended rates for approval.

Communication of Decision

Once the rates are approved they are posted as Appendix B on the NJC's Web site and the Travel Directive is amended accordingly.

Rate / Allowance: Meals and Incidentals – Canada and the USA

Appendix C of the Travel Directive establishes the rates and allowances for Modules 1, 2 and 3 of the Travel Directive for private non-commercial accommodation, meals, incidental expenses and weekend travel home transportation in Canada and the USA. They are established by location, i.e. Canada and the USA, Yukon and Alaska, N.W.T. and Nunavut. The rates and allowances are paid in Canadian currency within Canada (American dollars when the employee is in travel status in the USA).

Methodology

The meal rates are calculated bi-annually by Statistics Canada based on a survey methodology established by the Treasury Board. The rates for breakfast, lunch and dinner result from the collection of two data sources: (1) a meal survey where meal costs are collected in approximately thirty-three (33) cities (large and small) across Canada in hotels, cafeterias and fast service restaurants and (2) the Consumer Price Index (CPI) database, where the cost of "Food Purchased from Restaurants" data by city and meal type is extracted. Applicable provincial meal taxes and a thirteen percent (13%) tip for service is then added to the resulting meal rates.

Seventy-five percent (75%) of the meal and incidental allowances are paid starting on the thirty-first (31st) consecutive calendar day of travel status, while at the same location, when corporate residences and or apartment hotels are available to a traveler in the area surrounding the workplace, or the traveler chooses to stay in private accommodation, given that the traveler is expected to use the self-contained accommodation to prepare some meals.

The Government Travel Committee determines the private non-commercial accommodation allowance. The allowance is based on "best practices" benchmark and was put in place as an incentive to encourage travelers to use private non-commercial accommodation rather than more expensive hotels.

The Government Travel Committee also determines the incidental expense allowance. In Canada and the Continental USA, the allowance covers expenses for items while on travel status which no other reimbursement or allowance is provided for under the Travel Directive. Examples of items are listed in the Travel Directive; refer to the "Incidentals" definition.

The Government Travel Committee also determines the weekend travel home allowance. It is a global allowance that encompasses the accommodation, meal and incidental allowances. Refer to section 3.3.12 of the Travel Directive.

Review Process

The meal rates are reviewed every six (6) months and resulting revisions, if any, are effective as of April 1 and October 1. Private non-commercial accommodation, incidental expense, weekend travel home and weekend travel – alternative allowances are reviewed during triennial review of the Directive.

Approval Process

The proposed rates and allowances are sent to the Executive Committee for approval. Adjustments to the private non-commercial accommodation, incidental expense, weekend travel home and weekend travel-alternatives allowances become recommendations as a result of triennial review for the Executive Committee's approval.

Communication of Decision

Once the rates and allowances are approved they are posted as Appendix C on the NJC's Web site and the directive is amended accordingly.

Rate / Allowance: Meals and allowances – International

Appendix D of the Travel Directive establishes the rates and allowances for Module 4 of the Directive for private non-commercial accommodation, meals and incidental expenses at locations abroad, established by country/city (excluding the USA). The currency used for the reimbursement depends on the travel location.

Methodology

The meal rates are calculated by Statistics Canada based on a survey methodology established by the Treasury Board. Surveys are sent to Canadian High Commissions, Embassies and Consulates abroad for completion and resulting data is compiled by Statistics Canada for the Meal Rate Committee (comprised of Treasury Board, Statistics Canada, Department of Foreign Affairs and International Trade, Canadian International Development Agency and the Department of National Defense) for review. The rates for breakfast, lunch and dinner result from the collection of two data sources: (1) a meal survey where meal costs in multiple hotels, cafeterias and restaurants are collected and (2) tracking the international Consumer Price Index (CPI) and foreign currency values. The meal rates include an amount to cover taxes and tips.

Seventy-five percent (75%) of the meal and incidental allowances are paid starting on the thirty-first (31st) consecutive calendar day of travel status (while at the same location) when corporate residences and or apartment hotels are available to a traveler in the area surrounding the workplace, or the traveler chooses to stay in private non-commercial accommodation.

The Government Travel Committee determines the private non-commercial accommodation allowance. The allowance is based on "best practices" benchmark and was put in place as an incentive to encourage travelers to use private non-commercial accommodation rather than more expensive hotels.

The different percentages for the incidental expense allowances are adjusted by the Government Travel Committee to reflect changes in the overall market.

The Government Travel Committee also determines the weekend travel home and weekend travel‑alternative allowances. It is a global allowance based on the most economical return airfare, the necessary return ground transportation to and from the carrier's terminal, and meals en route. Refer to section 3.4.12 of the Travel Directive.

ReviewProcess

Numerous meal rates are reviewed every quarter and resulting revisions, if any, are effective January 1, April 1, July 1 and October 1. Private non-commercial accommodation, incidental expense, weekend travel home and weekend travel – alternative allowances are reviewed during triennial review of the Directive.

ApprovalProcess

Adjustments, if any, to the private non-commercial accommodation, incidental expense, weekend travel home and weekend travel – alternative allowances become recommendations as a result of triennial review for the Executive Committee's approval.

Communication of Decision

Once the rates and allowances are approved they are posted as Appendix D on the NJC's Web site and the directive is amended accordingly.

COMMUTING ASSISTANCE DIRECTIVE

Rate / Allowance: Lower Kilometric Rates

Appendix A of the Commuting Assistance Directive establishes the lower kilometric rate for each Canadian province, Northwest Territories, Yukon, and Nunavut, which are payable in cents per kilometre, when a government employee uses a privately owned vehicle other than on government travel.

Methodology

The lower kilometric rates (employee requested) are based on the Government Travel Directive kilometric rates methodology. The lower kilometric rates are determined by analyzing only the variable operating expenses of the kilometric rates methodology.

Review Process

The rates are reviewed four times a year and resulting revisions are effective January 1, April 1, July 1, and October 1 of each year. This coincides with the review of Government Travel kilometric rates. (Revised January 15, 2007)

Approval Process

The Executive Committee then reviews the recommended rates for approval. (Revised January 15, 2007)

Communication of Decision

Once the rates are approved they are posted as Appendix A on the NJC's Web site and the Commuting Assistance Directive is amended accordingly.